Abstract
Knowledge-intensive business services (KIBS) are important facilitators, carriers, and sources of innovation in the knowledge-based economy, acting as catalysts for internal communication and knowledge conversion. They also play an increasingly important role in public sector, providing specialized expertise that supports innovation and public service transformation. This research brief examines KIBS firms' engagement in UK public procurement, focusing on their
number and distribution rather than contract values. Using data from 2016-2022, we analyse patterns across different types of KIBS suppliers and government organizations.
Our analysis reveals that KIBS represent a large proportion of government suppliers, with particularly strong representation in computer programming and management consultancy. KIBS encompass a diverse range of services. The typology used in this research brief separates technology-intensive services (T-KIBS) from traditional professional services (PKIBS. We find distinct patterns between T-KIBS and P-KIBS, as well as variations across central government, local authorities, and NHS procurement. While the number of KIBS
suppliers has grown across all categories, we observe stronger growth in T-KIBS suppliers, especially in central government procurement.
The findings highlight important considerations for procurement. First, while KIBS expertise is crucial for public sector modernisation, particularly in technical domains like IT services, careful consideration is needed regarding the balance between external and internal capabilities, especially in management consulting. Second, with suppliers heavily concentrated in London,
procurement processes could be redesigned to encourage participation from regional KIBS firms, for instance through smaller contract lots or innovation partnerships. The analysis also suggests the need for differentiated approaches to T-KIBS and P-KIBS procurement, reflecting their distinct roles in public sector innovation.
number and distribution rather than contract values. Using data from 2016-2022, we analyse patterns across different types of KIBS suppliers and government organizations.
Our analysis reveals that KIBS represent a large proportion of government suppliers, with particularly strong representation in computer programming and management consultancy. KIBS encompass a diverse range of services. The typology used in this research brief separates technology-intensive services (T-KIBS) from traditional professional services (PKIBS. We find distinct patterns between T-KIBS and P-KIBS, as well as variations across central government, local authorities, and NHS procurement. While the number of KIBS
suppliers has grown across all categories, we observe stronger growth in T-KIBS suppliers, especially in central government procurement.
The findings highlight important considerations for procurement. First, while KIBS expertise is crucial for public sector modernisation, particularly in technical domains like IT services, careful consideration is needed regarding the balance between external and internal capabilities, especially in management consulting. Second, with suppliers heavily concentrated in London,
procurement processes could be redesigned to encourage participation from regional KIBS firms, for instance through smaller contract lots or innovation partnerships. The analysis also suggests the need for differentiated approaches to T-KIBS and P-KIBS procurement, reflecting their distinct roles in public sector innovation.
| Original language | English |
|---|---|
| Publisher | IPEC |
| Number of pages | 12 |
| Publication status | Published - 2025 |